How to Reverse a Journal Entry in Sage 100

Understanding Journal Entry Reversals

Journal entry reversals in Sage 100 are necessary for various accounting situations. These reversals are commonly needed for error corrections, accrual adjustments, estimated entries, and account reclassifications. The key principle is to maintain a clear audit trail by creating new reversing entries rather than deleting original entries.

Prerequisites for Journal Reversals

Before attempting to reverse journal entries in Sage 100, ensure:

• You have appropriate security permissions • The "Allow Journal Reversal" option is enabled in Role Maintenance • You have rights to create journal entries

Method 1: Direct Reversal Through General Journal Entry

This straightforward method involves manually creating a reverse entry:

Step 1: Access General Journal Entry Navigate to General Ledger > Main > General Journal Entry.

Step 2: Enter Source Information Input the same Source Journal, Entry Number, and Posting Date as the original entry.

Step 3: Create Reverse Entries On the Lines tab, enter the journal information with opposite debit/credit positions. For example, if the original entry was a credit, enter it as a debit.

Step 4: Finalize the Entry Click the Accept button to save the entry.

Step 5: Update the General Journal Print and update the General Journal to complete the reversal process.

Method 2: One-Click Reversal Through Account Maintenance

This more efficient method allows for quick reversals with minimal manual input:

Step 1: Navigate to Account Maintenance Go to General Ledger > Main > Account Maintenance.

Step 2: Locate the Transaction Select the account number and find the transaction to be reversed on the Transactions tab.

Step 3: Initiate Reversal Click the Journal Reversal button or use the Journal Zoom feature to access the Journal Drill Down window.

Step 4: Confirm Reversal Review the system prompt and click OK to proceed.

Step 5: Review and Update Access General Journal Entry to verify the reversal details and update the entry.

Advanced Reversal Features

Handling Different Period Reversals When reversing entries from prior periods:

1. Check if you need to reopen the General Ledger period in G/L Options
2. Verify the posting date is correct
3. Make any necessary date adjustments before updating

Batch Processing Considerations If batch processing is enabled, Sage 100 creates separate batches for each reversal, ensuring better organization and tracking.

Best Practices for Journal Reversals

Documentation Maintain detailed records of: • Original entry details • Reason for reversal • Date of reversal • Authorizing personnel

Verification Procedures Before finalizing any reversal: • Double-check all account numbers • Verify amounts match the original entry • Ensure posting dates are correct • Review the audit trail

Common Scenarios and Solutions

Accrual Adjustments When dealing with period-end accruals:

1. Create the original accrual entry
2. Use the reversal feature at the start of the new period
3. Record the actual transaction when it occurs

Error Corrections For posting errors:

1. Identify the incorrect entry
2. Use the Journal Reversal feature
3. Create a new correct entry if needed

Year-End Corrections When handling year-end entries posted to incorrect periods:

1. Use the reversal feature with appropriate dates
2. Enter the correct posting date and reversing date
3. Complete the process in one step instead of multiple entries

Troubleshooting Common Issues

Access Denied Messages If you receive access denied messages:

1. Verify security settings
2. Check Role Maintenance configurations
3. Ensure proper user permissions are set

Missing Reversal Button If the Journal Reversal button is not visible:

1. Confirm security settings
2. Verify user rights for journal entry creation
3. Check if accessing the feature from an authorized window

System Requirements and Maintenance

Regular Updates Keep your Sage 100 system current with: • Latest software updates • Security patches • Feature enhancements

Database Maintenance Maintain system performance by: • Regular database backups • Periodic system checks • Proper user access management

Audit Trail Considerations

Documentation Requirements Maintain comprehensive records including: • Original transaction details • Reversal justification • Supporting documentation • Approval chain documentation

Reporting Implications Consider the impact on: • Financial statements • Period-end reports • Audit trails • Compliance requirements

Conclusion

Mastering journal entry reversals in Sage 100 is essential for maintaining accurate financial records. The system offers multiple methods to accommodate different scenarios and user preferences. Whether using the direct reversal method or the one-click solution through Account Maintenance, following the proper procedures ensures accurate financial reporting and maintains a clear audit trail.

Regular practice and familiarity with these procedures will increase efficiency and reduce errors in financial record-keeping. Remember to always verify entries, maintain proper documentation, and follow established accounting protocols when performing journal entry reversals.

Citations: [1] https://www.ardentconsultingllc.com/resources/journal-entry-reversals-in-sage-100-a-comprehensive-guide [2] https://www.dwdtechgroup.com/sage-100-mas-90-200/how-to-reverse-a-general-ledger-posting-with-one-click-in-sage-100/ [3] https://www.swktech.com/auto-reverse-journal-entry-sage-100-tips-tricks/ [4] https://help-sage100.na.sage.com/2024/Subsystems/GL/GLMainProced/REVERSE_JRNL_ENTRY.htm [5] https://help-sage100.na.sage.com/2018/Subsystems/GL/GLMainProced/Reverse_a_Journal_Entry.htm